Tether, the firm behind the number one stablecoin, USDT, announced that it would reduce its commercial paper holdings to $3.5 billion by the end of this month.
The issuer announced that $5 billion of its current $8.4 billion commercial paper holdings would expire on July 31. This means the commercial paper in its portfolio will drop significantly and bring it closer to its goal of reducing its commercial paper holdings to zero.
Tether held around $20 billion in commercial paper in March, showing a steady decline in the past few months.
According to the statement:
This is part of a larger strategy to ensure that Tether has a diversified portfolio with limits to exposure on individual issuers or assets.
Commercial papers are short-term debts issued by companies. The move to cut down the commercial paper in its reserves to zero is part of an effort to show its transparency and validate the business.
Tether will phase out commercial paper in favor of treasury bonds
While it phases out commercial paper, Tether will increase its U.S. treasury bonds. U.S. treasury bonds now account for a significant portion of Tether’s portfolio, at 47% in its last quarterly report.
The issuer has been criticized for its lack of transparency due to failing to disclose the companies behind the commercial paper in its portfolio. During the Evergrande crisis in 2021, many suggested that Tether held Evergrande commercial paper, but it denied this.
Some weeks ago, another report claimed that its commercial paper portfolio is 85% backed by Chinese or Asian commercial papers. The rumors claimed they were unsecured and trading at a 30% discount.
Tether described these claims as false and only an attempt to generate panic in the distressed market. Paolo Ardoino, Tether CTO, has accused hedge funds of spreading false rumors to make profits by shorting USDT.
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Stablecoin issuer Tether took to Twitter on July 27 to clarify that it holds no Chinese commercial paper (CP) on the back of industry rumors that continue to claim its portfolio in the vertical is backed by 85% Chinese or Asian commercial papers.
The post Tether Hits Back at Critics; Clarifies Once Again That It Holds No Chinese CP as Reserves appeared first on BeInCrypto.
Many stablecoins are trying to fill the void left following the crash of TerraUSD. The Arcane report states that USDC is more regulatory compliant than USDT. After Terra’s stablecoin (UST) collapsed, many crypto industry players started calling into question the stability of other stablecoins. Yet, various stablecoins are attempting to bridge the gap left by […]
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One of the more unsettling events in the stablecoin sector occurred in May when Terra’s UST lost its 1:1 dollar peg. Chaos resulted from the de-peg, which also utterly destroyed Terra’s legitimacy. Nevertheless, the USDT and USDC survived the slaughter. Different stablecoins are working hard to fill the void left by it, though. The USD […]
Hedge funds are shorting Tether’s USDT because of two reasons. One is due to the concerns of the broader economy and the second is the concern that Tether doesn’t have enough reserves for its USDT in the market. Tether CTO Paolo Ardoino called it a “coordinated attack” from the hedge funds and “a new wave […]
Der Beitrag As more crypto hedge funds bet against Tether’s USDT stablecoin, CTO Paolo Ardoino lashes out erschien zuerst auf Crypto News Flash.
Tether Operations, the issuer of the world’s biggest dollar-pegged stablecoin, will launch a new token backed by the British Pound Sterling this coming July, The development follows Tether’s recent roll-out of MXNT, a crypto asset pegged to the Mexican peso. According to a corporate statement released on Thursday, the stablecoin (GBPT) would first be supported on the […]
DAI tops it off as the strongest stablecoin to date despite Terra’s plunge. USDT and UST may have plummeted – but not DAI. It’s been a brutal two weeks in the crypto space especially with the devastating collapse of Terra’s stablecoin UST, which is currently trading at a little below 6 cents. Suggested Reading | […]
Ever since Tether temporarily lost the dollar peg last week, rampant liquidation appears to have happened. Apparently, the crypto crash induced by the depegging of another stablecoin, Terra’s UST has had significant effect on investor sentiment. Massive Tether Liquidation According to CoinGecko data, as much as $7 billion worth of Tether has been liquidated in
The post Stablecoin Meltdown: This Token Loses $7 Billion Within A Week appeared first on CoinGape.
The largest stablecoin in the cryptocurrency world scared the already panicked market when its lost its dollar pegged value. It went down to slip as low as $0.9455 cents. However, it has now recovered to trade at the price of $0.993, at the press time. Meanwhile, the Tether organisation issued a statement amid the recovery.
The post Tether (USDT) Close To Recovering Peg Despite Rising Redemptions appeared first on CoinGape.
Ukrainian citizens are fleeing to crypto as a result of the ongoing Russo-Ukrainian war, or what The Washington Post called “the world’s first crypto war”. There is nothing more expensive than war. In terms of money, it can lead economies to crumble; and in terms of humanity, it can open deep cracks in history. As […]
What’s “Lugano’s Plan B”? The 9th biggest city in Switzerland plans to become Europe’s Bitcoin city. And Tether is there to help. How will the two entities accomplish that? On March 3rd, Tether’s Paolo Ardoino and Michele Foletti, the Mayor of the city of Lugano, will unveil the plan at a live-streamed conference. #bitcoin and stablecoins are revolutionizing the financial sector. #tether and The City of Lugano🇨🇭 @luganomycity are teaming up to transform Lugano into the European #bitcoin capital. Every city needs a plan. Join Lugano's Plan ₿ pic.twitter.com/wmhFVePcPo — Tether (@Tether_to) February 21, 2022 Announcing the event, Tether summarized the situation as follows: “bitcoin and stablecoins are revolutionizing the financial sector. Tether and The City of Lugano are teaming up to transform Lugano into the European bitcoin capital.” For their part, the city’s official Twitter said, “The journey of the City of Lugano continues to discover the innovative sector #blockchain #Bitcoin #StableCoin.” Continua il percorso della Città di #Lugano alla scoperta del settore innovativo #blockchain #Bitcoin #StableCoin👉Prossimo incontro il 3 marzo 2022, ore 17 al LAC, su iscrizione, oppure streaming @Tether_to @LuganoLivingLab https://t.co/g3NYTffvAT — Lugano (@luganomycity) February 21, 2022 “We at Tether_to and the Administration of the City of Lugano have been tirelessly working together to prepare Lugano’s Plan ₿!,” completed Tether’s Paolo Ardoino. He was also bold enough to predict, “100% crypto will relocate to Lugano.” We at @Tether_to and the Administration of the City of Lugano 🇨🇭 have been tirelessly working together to prepare Lugano's Plan ₿! 3rd March 2022 , I'll join @MicheleLugano (mayor) in a live conference, to disclose the plan!100% #crypto will relocate to Lugano 🤯#Bitcoin🇨🇭⚡️ https://t.co/dely2sBeNM — Paolo Ardoino (@paoloardoino) February 21, 2022 This all sounds wonderful, but, are they selling smoke? Even though bitcoin is prominently shown in all of the promotional material, a deeper look at the player’s words suggests the Lugano plan is to be a crypto city. Which is very different from a bitcoin city. Related Reading | USDC Leaves Tether Behind In Terms Of Market Cap And Becomes First On Ethereum How Much Bitcoin Will Lugano‘s Plan B Have? In a recent Twitter exchange, Michele Foletti responded to the worst question possible. Someone asked the Mayor of the city of Lugano about the usual bitcoin FUD, that it’s slow and expensive like the Lightning Network doesn’t exist. That it’s bad for the environment like that narrative didn’t collapse a while back. How did Foletti respond? “We focus on our 3Achain, more sustainable, public and open to all with limited costs http://3achain.org Blockchain for us is an opportunity for all those who look to the future with curiosity.” Ma noi puntiamo sulla nostra 3Achain, più sostenibile, pubblica e aperta a tutti con costi limitati https://t.co/r6HS5Fs42a Blockchain per noi è un’opportunità per tutti coloro che guardano al futuro con curiosità https://t.co/EQHtidHgcW — Michele Foletti (@MicheleLugano) February 21, 2022 He basically said “blockchain, not bitcoin.” Why name the program “Plan B” and promise a “European bitcoin capital,” then? And what’s all this about a Proof-of-Authority, completely centralized blockchain that describes itself as “the institutional blockchain platform promoted by the City of Lugano”? BTC price chart for 02/22/2022 on Bittrex | Source: BTC/USD on TradingView.com Institutional Blockchain Platform Promoted By The City Of Lugano In an article about the recent Lugano NFT Week, an event that also points at crypto, the Europa Press agency quotes Michele Foletti saying: “We have always followed the development of new technologies very closely and we have identified blockchain as a topic of great interest for both multinational and local companies, citizens and businesses. We believe that a city must be at the service of citizens and with these initiatives we intend to place Lugano as a top-level player on the international scene, for all applications related to this technology.” Does this man even know about bitcoin? Or is Lugano’s Plan B project using bitcoin in an affinity scam? Snow in #lugano pic.twitter.com/G5bFEXuIQ5 — Paolo Ardoino (@paoloardoino) February 15, 2022 Let’s go to 3Achain’s website to find out if “the institutional blockchain platform promoted by the City of Lugano” respects bitcoin. This quote summarizes it all: “It’s not about replacing public (so-called permissionless) blockchains, but about complementing them with a permissioned architecture that guarantees the parties involved not so much through the integrity of the algorithm that validates transactions through computing power, but through the validation of blocks by an independent authority.” What do they mean by “so-called permissionless”? And, in other words, they’re announcing they solved the blockchain trilemma by getting rid of decentralization. By adding a third party. Have you heard anything more anti-bitcoin? Conclusion And Disappointment Bitcoin is a Proof-Of-Work system. To understand it, you have to put in the work. El Salvador was the first country to adopt bitcoin as legal tender. It’s remarkable, almost a miracle, that President Bukele seems to understand the value proposition. Politicians don’t usually have the time for the necessary deep dive, so the world ends up disappointed. With disasters like MiamiCoin and the NY Mayor saying he’s pro bitcoin, but against bitcoin mining. Related Reading | Cryptocurrency Firms In Switzerland To Offer Tokenized Products On Tezos And here comes the Mayor of the city of Lugano and Tether to sing bitcoin’s praises. A “blockchain not bitcoin” guy and the organization behind the most controversial stablecoin. Even though it’s suspicious, let’s give them the benefit of the doubt and hear what they have to say. They might surprise us at the March 3rd conference. Maybe Lugano has a Plan B after all. Featured Image: Snow In Lugano, By Paolo Ardoino. From this tweet. | Charts by TradingView